Allegations of Massive Embezzlement in Bangladesh's Banking Sector
Bangladesh's new central bank governor, Ahsan Mansoor, has made serious allegations against businessmen associated with the ousted regime of Sheikh Hasina, claiming they collaborated with military intelligence to embezzle an estimated $17 billion from the country's banking sector. This staggering claim, reported by the Financial Times, highlights a scheme where approximately 2 trillion taka ($16.7 billion) was illicitly transferred out of Bangladesh through fraudulent loans and inflated import bills. Mansoor described this incident as 'the largest bank robbery by any international standards,' emphasizing the state-sponsored nature of the crime. He pointed out that the founder of the S. Alam Industrial Group, Mohammed Saif Alam, is at the center of these allegations, accused of embezzling at least $10 billion with military assistance.
The Response from Accused Businessmen and Legal Representatives
In response to the allegations, the S. Alam Group has categorically denied wrongdoing, labeling Mansoor's claims as 'baseless.' A statement from their legal representatives criticized the interim government's approach, asserting that it undermines due process and investor confidence in Bangladesh. The group has highlighted its significant contributions to the economy and expressed surprise at the accusations. Meanwhile, the Bangladesh Armed Forces have not commented on the situation, leaving questions about their involvement unanswered.
Recovery Efforts by the Interim Government
Following Sheikh Hasina's departure to India last August, the interim government, led by Nobel laureate Muhammad Yunus, has vowed to recover the allegedly embezzled funds. Mansoor has sought international assistance, particularly from the UK, to investigate the wealth of Hasina's allies. He detailed instances where intelligence officials reportedly coerced bank executives into resigning and transferring their shares under duress. The central bank plans to conduct audits of the banks seized during Hasina's regime and aims to recover the stolen assets through legal channels both domestically and internationally. Additionally, the government is considering selling stakes in the banks to reputable investors to restore financial stability in the sector.
